Distribution utilities are simply not able to sustain current pricing regime and pay power suppliers on time. Only recently, Delhi’s distribution utilities raised power tariff by 22% to make ends meet.
The big fear in the power sector is that a default on payment by one utility could set off a cascading effect.
Smart business-owners see the writing on the wall. They are beginning to invest in on-site supplies to shield themselves from spiraling utility bills and secure access to captive power at minimal on-going costs for 20 years.